Staples profits down 43% as 16 stores close

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Profit fell 43 percent at Staples in its first quarter as the Framingham-based office supply retailer struggles to complete with e-retailers.

Staples closed 16 stores in North America during its first quarter, which ended May 3 – resulting in $46 million in pre-tax charges – and plans to close another 80 stores on the continent during the second quarter. This is part of a plan announced in March to close up to 225 North American locations by the end of 2015.

Staples expects restructuring charges of between $105 million and $115 million for the second quarter, and between $240 million and $360 million for the full year.

Staples earned $96 million, or 15 cents per share, in its first quarter, down from $170 million, or 26 cents per share, a year earlier. The company also had to pay $11 million to repatriate foreign earnings.

“Despite a slow start to the first quarter, our results were in line with our expectations and we expect to build momentum throughout 2014,” Ron Sargent, chairman and CEO, said in a statement.

Excluding the closing and currency-related costs, Staples earned 18 cents per share in the quarter, which was still below analysts’ expectations of 21 cents.

Sales fell nearly three percent from $5.81 million to $5.65 million, yet beat forecasts of $5.62 million. The company experienced a drop in sales for business machines, core office supplies, paper and toner during the quarter, but saw growth in breakroom supplies and copy and print sales.

Shares of Staples stock were down more than 10 percent from $13.39 before earnings were announced Monday, to $12.02 Tuesday morning.